Enauta, one of the leading independent oil and gas companies in Brazil, announced the purchase of 23% of the Abalone, Ostra and Argonauta oil and gas fields that form part of the Parque das Conchas, in the Campos Basin. This stake represents the entire holdings of Qatar Energy Brasil. The transaction has a total value of US$ 150 million, with US$ 15 million disbursed upon signature and the outstanding balance (adjusted to the cash flow for the period) paid in three installments, following approval by the pertinent authorities.
1.Parque das Conchas
The Parque das Conchas is 50% owned by Shell (which is the operator) and 27% by India’s ONGC. Production is spread among 25 wells connected to the chartered FPSO Espírito Santo platform. The fields are currently under a concession period running until 2032. Production is presently around 35,000 barrels of oil equivalent per day, with an average of 28,000 barrels of oil equivalent per day in the first half of 2023. Enauta’s share corresponds to approximately 8,000 barrels of oil equivalent.
The company’s CEO, Décio Oddone, emphasizes that Enauta is the only independent Brazilian company in the sector that is developing a large-scale project in deep waters from scratch, namely the Atlanta Definitive System (DS). He adds that, “I have no doubt that we can take advantage of the capacity we have now, in this new asset. The Parque das Conchas complements the Atlanta Hub for oil sales, in terms of quality, logistics and the technology applied in the production, as well as synergy with the expansion opportunities planned for the coming years”.
This acquisition is part of Enauta’s strategy to expand its portfolio, at competitive production costs, increasing the efficiency in capital allocation and the risk-adjusted return on capital.
Conclusion of the deal is subject to prior conditions, in particular, the approval of CADE (Administrative Council for Economic Protection), Brazil’s competition watchdog, and the ANP (National Agency for Petroleum, Natural Gas and Biofuels).
Last week, Enauta had already announced the purchase of the Uruguá and Tambaú fields, in the Santos Basin, the FPSO Cidade de Santos and the infrastructure for channeling the gas flow. According to Mr. Oddone, these acquisitions will increase the scale and diversification of the company’s operations and represent important steps in the expansion of Enauta’s portfolio and generation of value for the shareholders.
2.FPSO Espírito Santo
